Tuesday, March 22, 2011

My understanding about "DEATH OF THE CONSUMERS” and some examples

My understanding about "DEATH OF THE CONSUMERS” and some examples


As we have been discussed last November 15, we talked about the different the different trends and opportunities in convergence and especially the death of the consumers or as what have our professor said from consumers and now the rise of the “PROSUMERS” which is the us: people, it is because as the generations changes a lot, the nature and the characteristics of the people is also being change. It is being change because of the things that currently exists in today’s generation, and that’s why people are also changing. In the old days, the people as the consumers will still act as a consumers, who’s buying the products that is being introduced or sell into the market. As we all know that in a marketing industry, it is about the producers and the consumers which are being involved aside from the products. When we say producers, from its definition they are the one who produce or the one manufacture the products that will be sold to the consumers, while the consumers are the core or the center of the market. In short, if both of the producers and the consumers are not been involved in the market, then it would be that the market industry would not be alive for the both of the producers and the consumers are the one who manufactures and bought the products. These two which is the producers and the consumers along with the market are being changed thru the convergence, which is the convergence is now part also of the market because it brings an enormous development and changes in the market industry.


Once again what is a convergence? How could it help our marketing industry? Convergence as what have been tackle in our discussion, convergence was described as the existence of the innovative products of technology in the industry. This convergence is introducing the changes in the market industry and this is also the meeting of the newly exists products which are now observed in the market. As we move along towards a new generation, there are many opportunities occur from the way of life changes as well as the growth of different styles in business that are developed through the convergence. A good example of that is the use of Information Technology, the development of mobile and smart phones, and the development of the handheld computers. These only mean that the convergence is really changing and improving the world. This is clear that in several ways of an entrepreneur are now being involved in the technology as a part of their business because of having a different technology to offer can make the customers or their client satisfy their desires and needs. As the trends and opportunities expand a lot in marketing ideas and techniques had been generated to deliver company products. As an example, the use of the internet technology is totally been used on how the different businesses are being modeled and how the business strategies are being implemented. As the convergence of the new technology continue develop over the market, the quality of the peoples life style would be change and also the way on how they facing the market would also be changed.


The “Death of Consumers”, it is simply all about from being the consumers and the rise of the prosumers. According to the site woriQ.com, they defined that a Prosumer refers to one of two possible portmanteaus formed by contracting either the word producer or professional with the word consumer. Further, prosumer has taken on conflicting spins: the business sector sees the prosumer as a means of offering a wider range of products and services whereas activists sees the prosumer as having greater independence from the mainstream economy. According in the book of Alvin Toffler which is the book “The Third Wave” coined the term prosumer when he predicted that the role of producers and consumers would begin to blur and merge. In particular, Toffler envisioned a highly saturated marketplace as mass production of standardized products began to satisfy basic consumer demands. To continue growing profit, businesses would initiate a process of mass customization, that is, the mass production of highly customized products. However, to reach a high degree of customization, consumers would have to take part in the production process especially in specifying design requirements.


So recently, markets are conversations with the new economy moving from passive consumers to an active prosumers. As an example for instance, the Amazon.com emerged as an ecommerce leader -- partially due to its ability to construct customer relations as conversations rather than simple, one-time sales. Amazon ... supports exchange of information among customers; it provides spaces for customers to add to the site, in the form of reviews. The usage of prosumer is springing up, especially among some activist groups. That is, the producer and consumer roles are being combined so as to exclude (or at least diminish) the role of the corporate producer; thus, rather than generating higher corporate profits from value-added products, producers would, at best, be reduced to supplying lower-profit commodity inputs. Indeed, the more consumer-oriented prosumer spin is irrelevant to many people with diminished disposable income caused by various economic trends such as globalization, automation, and wealth concentration.


The concept of a prosumer idea combines some of the common characteristics of a professional and a consumer. The term is generally applied to situations where consumers are considered to have reached a level of sophistication that the professional-consumer can effectively dictate the perimeters for the production of goods and services in terms of quality and structure. The difference between the garden variety consumer and the prosumer is that the latter typically possesses such a strong working knowledge with the product that he or she can successfully determine and perhaps even design a better product offering. In today’s generation, Prosumers are now common in many fields that were once the sole province of professionals. One good example is the combination of affordable computer technology and the Internet has also made it possible for the prosumer to assume a place in the world of publishing. Thanks to software programs and high quality printing materials and equipment, the prosumer can now produce hard copy and electronic magazines on a favorite hobby or interest. Desktop publishing also allows these highly skilled amateurs to produce high quality greeting cards, promotional brochures, and a wide range of published material. Even fledgling writers can be classified as prosumers, simply by using current technology to product an electronic book for distribution.


Commencing the idea of the rise of the prosumers, where the great engagement of prosumers came into reality and consumers to give a deep communications between the both parties. Because of the resulting convergence of prosumers, many effects are observed that has attained by the concept of prosumers. As what I have read in a blog about the rise of the prosumer, The term “Prosumer” was first mentioned (or created) in 1980 by Alvin Toffler in his book “The Third Wave”, describing the phenomena that consumers are not just merely consumers but becoming producers, too. According to Williams and Tapscott who write the book “Wikinomics” pick up the concept Prosumer and expanded its usage to include a growing numbers of consumers who are enabled to become producers, all driven by technologies that facilitate the cost efficient exchange of information, the mass-production of personalized products and services, and the immediate contribution and improvement in any kind of open source projects.


What is the difference of prosumers and consumers? I have stated above some of the descriptions and the differences of the two. But then again, in the period that the market has the control over the people, they termed the costumers as a consumer who buys or consumed their products. And at the time of the convergence, where in the technology have merged with the market processes, peoples’ demands had grown and in this specific period they had been taking the control over the market and hence they were called the prosumers. Prosumers take the part of being participative in the field of marketing as the user or consumer of the products and services. These prosumers are more interactive. They demand for what they want and need to the producers for the market to produce it. Prosumers are veteran form of consumers who deal and interact with the market for services, unlike the consumers who used to buy or consume the goods and services in the market without any demand or suggestions, prosumers are more skillful that’s why they were termed as professional consumers. The fast changing of the market from simple from to a complex and interesting form has been change and affected the quality of the services, had a for the most part contributed for the of the world. The behavior and lifestyle of the people from being a consumer to a higher structure of being a prosumer had increased the quality of life. The start of having so called prosumers which emphasizes the meaning of giving the clients the trend to apply modifications, enhancements or requests on the purchasing product. Through the influence and behavior of the market prosumers, they had been changing the structure and scope of the market in a large percentage every now and then. Who knows, the evolution still continuous and there might be a more dominant form of market users (the producers and consumers to prosumers).


As what I have read in a blog entitled “Marketing Geek”, it stated there that brands and their underlying business models are falling into three different categories of dealing and interacting with the “Prosumer” concept: First is the, Brands like Wikipedia or Firefox that can only exist through Prosumers. Their whole business model relies on the contribution of consumers. With these kind of business are available over the internet which has been made successfully because of the large communication or shall we say e-mail of the consumers or their clients to have a time to engage on such thing. These kinds of businesses are dependent on the awareness of the consumers and the willingness of them to communicate and make a move to have a deal on it. In other words, the businesses in this fashion are just moving because of the existing prosumers. Second are the brands like Lego, Haagen-Dazs or Addidas who allow the incorporation of Prosumers behavior in two ways: either as contribution to their own product design and creation process like Haagen Dazs’ ice cream flavor competition or as the opportunity to personalize their own version of the brand’s product liked customized shoes. Just like in the havaianas, their brands are granted to increase the availability of the customization on a thing where in their clients wanted to have. In which you can customized your own havaianas slippers. Lastly are the brands like Pepsi or Frito-Lay that open up very slightly their brand control to allow consumers to create TV spots or naming rights, all rather on the fringe of their brand experience. For me all these brands are valuable to the prosumers in which some argued that these brands do not really embrace the concept of the Prosumers but simply it pretend to take them serious by allowing them to influence non-core element of their brand.


As the population of the people in the world grow and changes every day, billions of people now are demanding for the supplies and the services in the market. The behavior of the consumers is also being change because of their different personalities, behavior occurs either for the individual or in a group like in a friends influences what kind of clothes they wear, or in an organization; the people on the job are making decisions to which product the solid should use. The consumer’s behavior involves also the use and the disposal of the products, what kind of the quality of the product, does it has a good quality or not, as well as the study on how they purchased that product. The Prosumers has their different behavior which demands more and more, and for this day, the Prosumers were considered too aggravating and craving for the better services which could handle them and could give them a lot more satisfaction of the payment they had been wanted. For these matter, the market are compel to find a way to give that wants and needs of those craving customers, basing on what they yell. Thus, the evolution of the market along with the technology and the customers or the consumers within its scope has been changed into a better and enhanced one, which considers the wants and desires of the consumers. Prosumers are considered as a selected type of customers who have their own mind to think for specific fashioned styles which fits there need, wants and personalities. Prosumers would have rather spend their time on stressing what they want, that’s why they were called as professional consumers. Pursuing on what they really wanted, these professional consumers or the prosumers would request a thing to satisfy their needs and demands.


As an example of the prosumers is that they use the internet to browse or search a certain thing, like if they want to eat a McDonalds product, in order for them not to go to the McDonalds establishments then they just visit the McDonalds website. In their website, the prosumers will just drag the menu or just simply they can make their own style of burger. And I think this kind of scenario the “Death of Consumers” occurred.
For me, I guess is that the rise of the Prosumer will continue and influence a larger percentage of a company marketing activity. But there will be always a large role for brands which apply strong control and an iron fist in designing its brand experience. They might allow the Prosumer to play in a well limited way but the core of its brand experience will be centrally defined and designed. As the technology continues to evolve, there is no doubt that the prosumer phenomenon will continue to grow and grow larger.Any marketer needs to find the right long-term path within these three different strategic options of integrating strongly or lightly the Prosumer, all in alignment of what makes a particular brand successful. But no brand can ignore the Prosumer anymore.

No comments:

Post a Comment